To sell or not to sell is the question

[Jason Waldo]

So I have a townhouse that just went vacant due to the tenant buying her own home in the same community and we have a few applications in in less than a month for new tenants. It’s in an HOA Communtiy of townhouses to give you a better idea of our property’s location. My wife and I are trying to determine if selling the property now is a good idea or bad idea. I will lay out the details of the property and the city it’s in and what I think about that town. I’m hoping some of you out there can help me figure out the wisest thing to do. I’m open to all suggestions and opinions. Townhouse 1200sq 2 bedroom 1.5 bath with a bonus bedroom or office in the basement. Purchase price: $32,000($24,000 left on mortgage). Current market value:$67k Rent: $925/month Mortgage: $282/month HOA Fee: $194/month Water:$27/month Management fee: $50/month Cashflow : $372/month My wife and I are trying to decided if we should sell this property and reinvest into a different property that has a higher upside like a SFR or not. The cash flow is decent and we never have an issue renting this place because of a college that is right in the backyard basically. The area is in an area that started out good then went sour and over the last 7 years or so has started to make a come back with better shopping and restaurants and the town is putting more money into it to make it nice again. This area is in Grandview Missouri which is a suburb of Kansas City. There are some rough patches within the town as in every town but our property is in one of the better parts of the town. My thinking is that if we sell the property and walk away with a bunch of cash we could buy another property with around the same cashflow but with higher upside as far as a SFR growing in value more quickly than a townhouse would. My wife is thinking that she likes the cashflow and it rents really easy. She would like to potentially keep it and just buy another property some where else. Keep performing asset and buy more. I agree with both opinions. Mine and my wife’s. What do you guys think????